Business Process Solutions - Business Process as a Service (BPaas)

Gartner defines business process as a service (BPaaS) as the delivery of business process outsourcing (BPO) services that are sourced from the cloud and constructed for multitenancy. Services are often automated and where human process actors are required, there is no overtly dedicated labor pool per client. The pricing models are consumption-based or subscription-based commercial terms. As a cloud service, the BPaaS model is accessed via Internet-based technologies.

Cloud computing is nothing new and is now used more than ever to transform and innovate businesses, not just to support commodity processes. Senior IT executives and business process owners should evaluate process visibility, accountability, and adaptability of BPaaS to see if a cloud service can support business process change.

One new entrance into the BPaaS model, however, is the concept of an "outcome based" business model. In this model, the client doesn't care how many transactions you process or how many people you employ to complete the project, they simply pay for improved outcome. This could to be tied to a percentage of the company's revenue for this project, or simply a Pay for Perfection - only those processes that are done right.

In a recent article published by IBM, Ajay Mohindra stated:

"The services industry is shifting its focus away from the delivery of IT outcomes and towards the delivery of business outcomes that result from IT services. Traditional IT-based services focus on reducing IT costs for the enterprise through automation and standardization. The performance metrics are not surprisingly in the language of IT; mean-time-between-failures, average service utilization, average storage utilization, the service-level agreements, or the number of servers that can be managed by a system administrator. Clients are increasingly using measures of revenue, profit goals, and other metrics that indicate positive impact on business performance. This shifting focus is helping companies that adopt this approach to increase sales, reduce the cost of customer aquisition, and more effectively retain existing customers.

Some industries such as healthcare and government are particularly ready for an outcome-based model as they seek to contain costs while simultaneously investing in projects that add value to the organization. For example, to reduce costly patient re-admittance rates, government agencies have passed laws that penalize hospitals if a patient is re-admitted within 30 days with an estimated savings of $8 billion over ten years. IT service solutions that address patient transition care are designed to allow hospitals to manage their patients more effectively, with the objective to reduce re-admittance rates and avoid penalties. Another example is services solutions for clinical trials of drugs, which once were aimed primarily at cutting costs in the trial process but increasingly will target revenue growth by focusing on accelerating the launch of a new drug, thereby increasing market revenue potential and reducing operational expenses for clients. The project's goal is to systematize outcome based business methodology".

Explore your BPaaS options with Telamon by contacting:

-John Owen
VP of Sales
Business Process Solutions - Telamon Corporation
john.owen@telamon.com
317-818-6697